Cerner Corporation Fundamental Analysis
Cerner Corporation Fundamental Analysis
Cerner Corporation (CERN) shows weak financial fundamentals with a PE ratio of 52.39, profit margin of 9.64%, and ROE of 13.61%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CERN's fundamental strength across five key dimensions:
Efficiency Score
WeakCERN struggles to generate sufficient returns from assets.
Valuation Score
ModerateCERN shows balanced valuation metrics.
Growth Score
ModerateCERN shows steady but slowing expansion.
Financial Health Score
ExcellentCERN maintains a strong and stable balance sheet.
Profitability Score
WeakCERN struggles to sustain strong margins.
Key Financial Metrics
Is CERN Expensive or Cheap?
P/E Ratio
CERN trades at 52.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CERN's PEG of -2.16 indicates potential undervaluation.
Price to Book
The market values Cerner Corporation at 7.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.85 times EBITDA. This is generally considered low.
How Well Does CERN Make Money?
Net Profit Margin
For every $100 in sales, Cerner Corporation keeps $9.64 as profit after all expenses.
Operating Margin
Core operations generate 12.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.61 in profit for every $100 of shareholder equity.
ROA
Cerner Corporation generates $7.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $3.73 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
52.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CERN Stacks Against Its Sector Peers
| Metric | CERN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 52.39 | 34.27 | Worse (Expensive) |
| ROE | 13.61% | 377.00% | Weak |
| Net Margin | 9.64% | -42945.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.51 | 5.54 | Neutral |
| ROA | 7.47% | -162.00% (disorted) | Weak |
CERN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cerner Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation